Mayor Sciarra’s FY26 Budget Information
1. Fiscal stability plan remains the foundation
SOS Response: The fiscal stability plan currently allocates only 1/12th (8%) of surplus money to the operating budget and 11/12ths (92%) to maintenance and special capital projects.
This 8% allocation to the fiscal stability fund is inadequate and has not supported level or satisfactory city services.
City Council should consider increasing the fiscal stability fund allocation to 33% or higher.
2. Climate Action with Measurable Results
SOS Response: Northampton has expended significant general account funds on electrification projects and has started to receive benefits through utility savings.
Seeded with city funds and an ongoing 1/12 (8%) allocation of surplus money, the climate fund currently has a $4m balance (and growing).
We think it’s worth having a thorough discussion on what the best use of the $4m is.
For example, free bussing would contribute to many city goals (carbon reduction, traffic calming, school attendance, school enrollment, etc).
3. Balancing Rising Costs with Fiscal Responsibility.
SOS Response: The Mayor highlights the use of $1.4m from the fiscal stability account. This may sound like a lot, but it is less than 1% of the city’s total funds and less than 1% of the annual budget.
The fiscal stability plan allocates too little to the fiscal stability fund (only 1/12th or 8% of surplus money). The majority of surplus money (92%) goes to maintenance and capital projects.
The City Council could change how it allocates surplus money going forward (for example, it could allocate 67% to capital projects and 33% to the fiscal stability fund). This would be a more sustainable way to support the operating budget with “recurring funds.”